Max Drawdown on our One-Step Challenge, including its Master Account and our Instant Master Account, is calculated based on the highest balance ever recorded on the account.
How It Works:
At the beginning, your highest recorded balance on the account is used as the starting point for your trailing Max Drawdown calculation. For example, if your initial highest balance is $100,000, and your trailing Max Drawdown percentage is 6%, the drawdown is calculated as:
6% of $100,000 = $6,000
Your trailing Max Drawdown threshold is set at $94,000.
If your highest balance reaches $103,000, the trailing Max Drawdown recalculates as:
6% of $103,000 = $6,180
Your new trailing Max Drawdown threshold becomes $96,820.
Locking of Trailing Max Drawdown:
The trailing Max Drawdown will never exceed your initial balance.
For example:
If your initial balance was $100,000 and your highest balance reaches $108,000, your Max Drawdown would be $101,520 (6% of $108,000). However, this value is locked at your initial balance of $100,000, meaning the trailing Max Drawdown will remain at $100,000.
Similarly, if your highest balance reaches $110,000, the Max Drawdown will still remain at $100,000.
Rewards (Payouts) and Safety Cushion
When requesting a payout from an account with a trailing Max Drawdown, it is essential to always maintain a safety cushion. On both the Master Account in a One-Step Challenge and the Instant Master Account, any withdrawal is counted as a loss.
For Instant Master Accounts, after the first reward (payout), the trailing drawdown is locked at the account’s initial balance.
For example:
If you have an $8,000 profit, bringing your balance to $108,000, you should not withdraw the entire $8,000.
Withdrawing the full profit would breach your account since you would have no available balance above your Max Drawdown level ($100,000) left to accommodate the withdrawal.
If you're unsure about our rules, please reach out to our specialized support team. As experienced traders themselves, they understand the challenges you face and are ready to help.